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7. U.S. Multinational Corporation’s subsidiary in Bangkok has on its books fixed assets  valued at 408000 baht. One-third of assets were acquired two year ago when the exchange rate was THB 32=$1. The other fixed assets were acquired last year when the exchange rate was THB 32= $1. Each layer of fixed assets is being deprecated straight-line with an estimated useful life of 20 year. Relevant exchange rates for the current year are                                                    Year-end rate THB 32=$1                                                     Average rate THB 36=$1 Calculate the Thai subsidiary’s depreciation for the current year, assuming the baht is the functional currency.

7. U.S. Multinational Corporation’s subsidiary in Bangkok has on its books fixed assets  valued at 408000 baht. One-third of assets were acquired two year ago when the exchange rate was THB 32=$1. The other fixed assets were acquired last year when the exchange rate was THB 32= $1. Each layer of fixed assets is being deprecated straight-line with an estimated useful life of 20 year. Relevant exchange rates for the current year are                                                    Year-end rate THB 32=$1                                                     Average rate THB 36=$1 Calculate the Thai subsidiary’s depreciation for the current year, assuming the baht is the functional currency.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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7.

U.S. Multinational Corporation’s subsidiary in Bangkok has on its books fixed assets 

valued at 408000 baht. One-third of assets were acquired two year ago when the exchange rate was THB 32=$1. The other fixed assets were acquired last year when the exchange rate was THB 32= $1. Each layer of fixed assets is being deprecated straight-line with an estimated useful life of 20 year. Relevant exchange rates for the current year are
                                                   Year-end rate THB 32=$1
                                                    Average rate THB 36=$1
Calculate the Thai subsidiary’s depreciation for the current year, assuming the baht is the functional currency.

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